Spencer West secures return of approximately £1 million following Account Freezing Order

Client regains access to funds after nearly two years under an Account Freezing Order

Lisa McKinnon-Lower, partner at Spencer West has secured the return of approximately £1 million to a client after nearly two years during which the funds were restrained under an Account Freezing Order (AFO).

HMRC opposed the client’s position throughout, including resisting an application to vary the order to permit living expenses. Spencer West progressed the case through detailed litigation, including an application for judicial review of the Magistrates’ Court’s refusal of the variation, on the basis that an incorrect legal test had been applied.

Following the submission of detailed evidence on the client’s behalf, HMRC confirmed on the final day of the AFO that it would not seek an extension and would not apply for forfeiture. The order therefore lapsed and the client regained access to the funds. Attention now turns to potential applications for wasted costs and compensation against HMRC.

This was an especially challenging case given the involvement of Hawala banking, where evidencing provenance of funds is notoriously difficult and success is rare.

Lisa McKinnon-Lower said the matter served as a reminder for thorough judicial scrutiny.

“This matter underlines the importance of careful judicial scrutiny of Account Freezing Orders and the need for enforcement authorities to apply the correct legal tests when seeking to restrict access to funds which can have a devastating impact on those affected by the order.”

Spencer West acted with counsel Richard Saynor and Nathan Rasiah of 23ES Chambers.